In 2018, the CEO and co-founder of EZ Blockchain, Sergii Gerasimovich, began exploring less expensive sources of power for miners. He found his answer in associated gas, a byproduct of oil drilling. This vast, traditionally burnt-off energy source, Gerasimovich discovered, produces more CO2 emissions than cars, making it a prime contributor to climate change.
Gerasimovich and his team realized that one oil well holds the potential to power 1.5 megawatt of electricity consistently. Despite the promising aspects of this energy source, utilizing it is not a simple procedure from a technological standpoint, and it indeed comes at a cost. Notably, the gas that oil wells emit is a cocktail of different gasses, such as methane, butane, and propane, creating an additional challenge in generating power.
Yet, despite the technical and financial hurdles, Gerasimovich and his team remained undeterred. They liked the idea of repurposing wasted energy and averting climate change by using polluting gases. This step appeared to align flawlessly with the fact that associated gas, comprised of methane among other hydrocarbon gases, is a hefty contributor to global warming- methane alone is 25 times more conducive to the greenhouse effect than CO2.
Gerasimovich and company reasoned that if they could direct this byproduct to power generators, they could potentially leverage it to mine bitcoin.
However, does this strategy really help alleviate environmental damage? As it turns out, the answer is heavily disputed. Critics argue that bitcoin mining driven by associated gas bolsters the profitability of oil drilling and delays the transition away from fossil fuels. This essentially legitimizes the further usage of fossil fuels to mine bitcoin – a practice viewed as an unconscionable luxury amidst escalating weather anomalies.
On the other hand, proponents of crypto mining with associated gas argue that it helps mitigate pollution resulting from flaring, and prevents wastage of the gas.
Furthermore, using associated gas for mining can be more profitable than selling it as fuel. For example, in Russia, consulting firm Vygon Consulting reported that using associated gas in mining could generate up to $1.4 billion a year in revenue.
In light of these findings, Gerasimovich decided that EZ Blockchain should supply equipment and technology services to the oil and gas companies willing to mine for themselves. Yet, to Gerasimovich’s surprise, he noticed lackluster interest from the fossil fuels industry.
While mining on associated gas does deserve support and can help address climate change, it is still seen by groups like Greenpeace as a “false solution” to the fossil fuel pollution problem. Indeed, Gerasimovich’s bold venture into associated gas mining is a clear sign of how abouterly broad and complex the balance between environmentalism and cryptocurrency can be.
Source: Coindesk
